Ether (ETH) is exhibiting a potentially bullish ‘Power of 3’ pattern, comprising Accumulation, Manipulation, and Distribution phases, suggesting a rally towards the $5,000 level. This technical setup gains support from substantial institutional demand and significant inflows into Ether exchange-traded funds (ETFs).
Spot ETH ETFs have recorded net inflows of 106,000 ETH in the past week alone, marking their seventh consecutive week of positive capital inflows. This sustained institutional flow underscores building momentum within the Ether market.
However, significant short-term risks loom. Large-scale holders recently moved $237 million worth of ETH directly from staking contracts onto exchanges. This substantial whale transaction increases potential selling pressure and raises concerns over an immediate price correction possibility of up to 25%.
Further technical hurdles include resistance around the $2,500 price level and a recent decline in spot trading volumes, pointing towards bearish pressure in the near term. Immediate liquidity support is identified in the range between $2,350 and $2,275.
Market analysts caution that navigating Ether’s price action requires diligent monitoring of key factors: continuation of ETF inflows, whale wallet behavior, and the defense of crucial price support levels amidst competing bullish catalysts and near-term headwinds.